Where to start with Problem Debts Discussion Area

Former_MSE_Andrea

The following is the area to discuss or ask questions about the site guide "Where to start with problem debts?" which you can click here to read.

boozer_2

I am in terrible debt and i'm working really hard to clear it by taking more hours on. I want to know the best way and the quickest way to clear it and where to start. My credit rating isn't exactly great and the debt is quite big. I am so worried. Pls help any one out there

The following is the area to discuss or ask questions about the site guide "Where to start with problem debts?" which you can click here to read.

baddaddy

First thing to do is stop worrying. The law is on your side, any company that usees bullying tactics are operating outside of the law and you MUST report them.

You must NOT ignore your debts, get them passed over to a respectable company who will look at your outgoings and any type of income you may have. They then will negotiate with your debtors as to how much you can afford. My sister has £48000 worth of debt, earns £1640 take home a month, and only pays £156 pm.There is no interest to pay either, as they have negotiated to stop all interest charges. Everyones circumstances are different, her outgoings are high ,rent etc.

There are many companies that will take over your debt problems, without charging you a penny. DO NOT pay any company for taking on your debt. Gemstone in Birmingham charge the companies you owe money too.

Prioritise your outgoings. So rent or mortgage must be at the top of your agenda, followed by your utilities , food, travel to and from work. If you can afford to make extra payments then do so. Bad credit is only a problem if you want more credit, but if you got into so much debt in the first place, it will only benefit you if you are unable to get more debt.

MSE_Martin

Hiya first of all have you read through the article. There are lots of options there.

It boils down to three things (in fact i may add this to the article itself

i. Reduce the cost of the interest
ii. Pay off the highest interest rate first
iii. If you feel you can't cope get one on one help, it's readily available for free from people who are on your side, use these, not the commerical agencies out to make money from you.

Martin

Pat__3

I am in terrible debt and i'm working really hard to clear it by taking more hours on.  I want to know the best way and the quickest way to clear it and where to start.  My credit rating isn't exactly great and the debt is quite big.  I am so worried.  Pls help any one out there

Also boozer I used a site called,  https://www.debtquestions.co.uk
who help me enormously and the Ask The Expert, Simon Wiggins of the site is very helpful.
I really would recommend taking alook as you can read others cases simular to your own.
He did do work for the National Debtline and a Debt programme for the BBC tv.

lesandflynny

Hi Andrea

i caught Martin's radio slot on radio 2 yesterday and heard him mention payplan. My Brother is about to use them to negotiate with his creditors but I did not catch weather martin said they were ok or baddies,

Can you or anybody help. Should we stick with payplan?

many thanks
Diane

COS

Take a look at this for info....... http://www.payplan.com/

Debt_Free_Chick

Hi Andrea

i caught Martin's radio slot on radio 2 yesterday and heard him mention payplan. My Brother is about to use them to negotiate with his creditors but I did not catch weather martin said they were ok or baddies,

Can you or anybody help. Should we stick with payplan?

many thanks
Diane

Yes - Payplan are fine. The reason being that they do not charge you anything for the advice they give or for arranging a Debt Management Plan. IIRC, they are funded by the credit card & loan industry, to help people who have unmanageable debt.

Martin mentions three such companies in his article about managing debt

https://www.payplan.co.uk

https://www.cccs.co.uk

https://www.nationaldebtline.co.uk

Of the three, National Debtline seems to have the most comprehensive information on its website. It's well worth a look, even if you're with Payplan, as they explain a lot of what they do for you. You can do this yourself, or leave it to Payplan, CCS or National Debtline. This can be very useful as the lenders/debt collectors can be very persistent and difficult to deal with, yourself.

Stick with Payplan - no reason not to. But have a look at the National Debtline site.

Other companies will run a DMP for you, but they charge you. So you pay them £x per month to pay off your debt, but some of it is used to pay their fee for arranging this! None of the companies suggested by Martin do this - they all run a free service.

good luck

chillibean_2

I was wondering if anyone could offer any advice - I have read around the site and have Martin's book, but am starting to confuse myself with what option to take.
Situation is:
Am purchasing an off plan development for which I need £14,400 balance of the deposit (yes I probably shouldn't have put myself in this position in the first place but it's a long story and a done deal now..)
We have £10k cash ready but need to get another £5k
Have 2 different (Halifax & HSBC) credit cards with £1,147 and £3,196 owing respetively.
Do I concentrate on paying off the credit cards and get another to balance transfer?
I was thinking of getting a cash lump sum then transferring balance? then read about SBT and feel slightly confused.
Time is of the essence if I need to apply for additional credit cards - Come new year we should be able to clear all the cards so am looking for something short term.
My husband is a full time employee, but I am self employed so banks are a lot harsher now.
Any suggestions welcome

Incognito_3

I have a unique financial/debt problem that I really need some help on but cannot risk detailing, in case I'm identified (personal reasons - not illegal ones), hence the pseudonuem and the time of posting.

I'm desperately seeking some advice to help me out.

I will post my questions on this thread over the next few days.

Sorry that it is so "cloak & dagger", but it is genuine and I'm not anyone famous!!

Martinslovechild

Chillibean/Incognito

This isn't the place to post as nobody is likely to answer your queries in here - this is simply the Where to Start thread.

Therefore, I suggest that you both start a new thread each. That way, people will see the threads and respond accordingly.

I am happy to help you also, and will do so if you post a new thread so that others also have a chance to help out.